Wayne to file tax reform bill today

Rep. Jim Wayne will make a fourth try to pass a package of tax reform measures he estimates would mean an additional $310 million annually for the state while providing $90 million in tax relief to the working poor. 

During a press conference in the Capitol this morning, Wayne said the four components of his plan would help overhaul a structurally imbalanced state budget and provide a more steady source of revenue for the state. 

“It’s going to be worse in the next fiscal year unless we make some systemic, structural changes,” said Wayne, a Louisville Democrat. 

Included in the plan is levying sales tax on services used primarily by the wealthy, establishing a state earned income tax credit, decoupling the state estate tax rate from the federal rate and changing the state income tax system. 

Under the proposed changes to the income tax structure, income up to $75,000 would be taxed at 6 percent and the rate on income above that $75,000 threshold would be taxed at a higher rate. 

For instance, someone making $100,000 each year would pay a 6 percent tax on the first $75,000, and the remaining $25,000 would be taxed at a higher rate. 

Steve Boyce, vice chairman of the citizens advocacy group Kentuckians for the Commonwealth, said the proposal is designed to make the tax system more fair and reduce the burden on those in the state with lower incomes. 

“(The tax system) was not fair when we began, and it’s not fair now,” Boyce said. “It’s clear that the current system is regressive. … As you go up the income scale, the percentage people pay is less and less.”

Wayne said House leaders are aware of the proposal, but he has not spoken specifically about this year’s bill with them. Wayne said Gov. Steve Beshear has said he is willing to meet to talk about the proposal, but that meeting hasn’t been set up. 

Last year, a revised version of Wayne’s bill including just the earned income tax credit and estate tax provisions was passed by the House Appropriations and Revenue Committee, but was not called up for a vote before the full House.

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One Response

  1. Winston Churchill who said, ” You can’t make the poor rich by making the rich poor.”.

    Recently I came across another quote that made sense to me. How far can we push the Robin-Hood scheme?

    Quote by Adrian Rogers:

    “You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that, my dear friend, is about the end of any nation. YOU CANNOT MULTIPLY WEALTH BY DIVIDING IT”

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